Glossary of Terms
Annual Giving - a fund-raising program that solicits gifts on a yearly basis from alumni, parents, and friends. Annual gifts are generally expended during the year in which they are received and fall into one of two categories: unrestricted gifts, to be used as needed, and restricted gifts, designated for a specific purpose.
Annual Scholarships - awarded as contributions are received. Earnings do not accrue. Annual scholarship awards usually distribute all of the available funds each year and may be renewed annually.
Bequest - a gift provided for in a person's will.
Case Statement - a document stating the most crucial needs of a particular organization that warrant financial support.
Charitable Lead Trust - a trust that provides income to the charitable organization, with the corpus of the trust reverting to the donor or donor's family after a specified period of time.
Charitable Remainder Annuity Trust - a trust in which a donor transfers assets to a trustee subject to the right to receive a fixed percentage of initial net fair market value of property for life.
Deferred Gift - a gift whereby the charitable organization does not benefit until sometime in the future, according to conditions stated in the contract.
Endowment - a pool of funds held by the Foundation which is invested to provide an annual income for the institution.
Foundation - a nonprofit organization, usually established for the purpose of making financial/philanthropic grants to qualifying persons or institutions.
Gift Annuity - a gift by a donor to a charity in exchange for guaranteed stipulated lifetime annual payments. The money goes to the charity at the donor's death.
Gift-in-Kind - a contribution of equipment, supplies, or other property in lieu of money.
Life Estate Agreement - a donor transfers title to a home or farm to a charity, reserves the right to live in/on the property and receives income from it. At the donor's death, the home/farm is the property of the institution.
Major Gift Campaign (capital campaign) - an organized, intensive fund-raising effort on the part of an institution or organization to secure extraordinary gifts and pledges for a specific purpose or purposes during a specified period of time.
Planned Giving - the making of gifts to a charity, resulting from a planning process which considers the effects of the gift upon a donor's estate.
Pledge - a signed and dated commitment to make a gift during a specified period according to specified terms.
Pooled Income Fund - a donor transfers money/property to an irrevocable trust operated by a charity, receiving a share of income for life. Whatever remains at the donor's death is available to the charity.
Probate - the "proving" of a will. When a person dies, the will is taken to the probate court to prove that the will is indeed the person's last will and testament.
Revocable Living Trust - a flexible agreement where a donor transfers income-producing property to a trustee and receives income for a specified period. The remainder in the trust at the donor's death is the asset of the charity.
Stewardship - a process of recognition that continues to convey appreciation to donors and enhances donor relationships.
Volunteer - any person who works without compensation on a temporary or continuing basis.
Will - a person's statement to the public regarding the disposition of his or her property at death.